Compounding interest question

Real Estate Agent · Charlotte, NC · Member since 2020 · 47 posts · 35 votes

I hear a lot of talk about compounding interest on rental properties. I’m curious of how everyone out there does this and what methods they find to be best?

0 Reply

17 views

2 Replies

Jump to latestLatest

Sort by

Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
6y
The two are not really related.....compounding is when interest is not paid or collected so the interest gets added to the balance so you start earning “interest on the interest” as well as the principal balance. Some people confuse a mortgage loan with “compound” or “amortized “ (no such thing) interest.
1 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
6y
@Steven Moore not sure what they are talking about. Compounding interest is interest earned reinvested and it is earning interest
7e investments53 Reviews
Website View Page
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.